Tips to Schedule 1-A

[AccountingSolutions]

I have a W2 that is correct and the tips are in box 7. However, the software will not put this on schedule 1-A as a deduction. In Part III H1 I marked 1 using tips as my method of qualified tips and it doesn't put anything on line 1. How can I get this to flow properly?

[abctax55]

Income?

Filing Status?

[AccountingSolutions]

My client is Married filing jointly with income less than $50,000

[abctax55]

Sounds like it s/b allowed then, but I don't speak PS (only Lacerte).

Hopefully a PS user will wander by with ideas.

[TaxGuyBill]

It is working for me.

Maybe try deleting the W-2 worksheet and re-enter it???

[BobKamman]

The total joint income is less than $50,000?  Is there any taxable income without taking tips into account?  

[AccountingSolutions]

I did try this and it still isnt working. I even updated my program thinking that may be the problem.

[AccountingSolutions]

Her total income is less than $50,000. She does have other earned income other than this specific W2

[Just-Lisa-Now-]

In the tips section of the W2 worksheet, did you chose the type of worker they are?  It wont calculate until you choose in that drop down menu.....then do you see the amount at the bottom of Part III that shows how much goes to 1A?

YOU dont mark anything on the 1A for tips, it all flows from the W2 worksheet.

[ljr]

did you put the occupation code on the w2 input

[IntuitVanessa A]

To get the No Tax on Tips to work, you have to continue through with the rest of the qualifying questions on the W-2 worksheet.  Under Part III, you need to answer question 9 and 10, then you should see the amount go to Schedule 1-A

[AccountingSolutions]

Yes I have marked the client as wait staff and it still shows zero at tips to schedule 1-A. I have deleted the W2 worksheet and started over, I have updated my software and nothing works.

[AccountingSolutions]

Yes I have marked the client as wait staff and still have a zero as tips for schedule 1-A

[AccountingSolutions]

Yes I have done all of these things and still have zero on the tips to schedule 1-A line.

[BobKamman]

I asked about "the total joint income" and your response was "Her total income is less than $50,000."  So again, what is the total AGI on the joint return?

[Dusty1]

Married filing separate?

[abctax55]

@Dusty1   I asked the OP that yesterday, the response was MFJ... but *we* are still attempting to get a specific answer as to total income

[IntuitThomasM125]

To be sure, you should check the filing status, the taxpayer cannot be filing married-separate. Also, you must select a qualifying occupation in line 9 of part III of the W-2 entry. Further, the taxpayer must have a valid social security number.